Traditional and modern role of Accountants!

In today’s day, accountants play a varied role in business. Traditionally, their role was to maintain financial information in an organized manner. Now, accountants also analyze the information and partake in the decision making process. They have become an important asset of the business. Just as a ship needs an anchor, a business needs an accountant. The modern day Accountants are equipped with knowledge and expertise to handle a wide number of roles though accounting.

Traditional Roles

Preparing financial statements
Preparing of financial statements starts with the collection of business and financial data and moves on to segregation, analysis and compilation of the same in an organized manner. Accountants, like that from singapore – CFO Accounts Services, are armed with the knowledge of what information is to be stored in what file.

Tax planning
This is one of the most important duties of an accountant. An accountant has thorough knowledge of the tax structure and tax laws and can advice you on the same. For example, one professional Accountant, can advice you on the savings you can earn as well as tax returns you are entitled for.  A good accountant is one who is well prepared with information to sort out taxation formalities before the end of the financial year.

Cost Saving
Accountants can help a business minimize costs through cost and management accounting. Cost accounting is the assessment of the cost of production at each and every step of the production process. The information is used at the managerial level to determine where costs can be cut. However, the saving of cost should not hamper the growth of the business and therefore, an accountant with sound knowledge of cost accounting is an asset for the business.

Auditing
Auditing helps a business in sorting out any irregularity that may take place. A number of accountants are a part of various government and non-government bodies, which encourage ethical practices while performing the function of accounting.

Modern roles

Setting up accounting systems
As business and services get technologically advanced, accountants roles also need to evolve. Manual processes are not only tedious and time consuming they are outdated as well. Todays accountants are trained in the use of software to fulfill their roles. Also known as Accounting Information System (AIS), the software is used by accountants to ensure minimal errors and a speedier process of accounting. Accountants can customize the software according to the needs of the business. This is the biggest advantage of the Accounting Information System and its allied systems.

Advisory services
Accountants can provide advice on various business matters like long term planning and decision making. While they would earlier compile financial information, they now assess it so that it can be used in a productive manner. Accountants bring together their expertise to counsel managers on the implications of their business cycle and other fluctuations that can occur.

Investment decisions
Along with cost saving and tax planning, accountants are now helping business make solid investment decisions. Accountants may have insider information that can help businesses make the right choice.

Internal Public Relations
Accountants can form a bridge between managers of various departments as they assemble information from various sources and compile it. This information can help management take decisions which will help in overall planning for the company. Fraud control, internal audit and such roles form a part of modern day accountant roles.

Investor Relations
Financial information connects the investors to the business. The role of accountants is to present the information in a synchronized manner so that it can be communicated to the investors.

As business and economy gets advanced, accountants arm themselves with knowledge to serve the company in the right manner. Recently I came to know about a professional accountant, who explains me that it is essential to change the manner of accounting and providing services to companies which suits both present and future needs. One function of an Accountant that stands apart is reviewing the past while making future decisions. Accountants can help meet challenges of the business and countering malfunctions that can occur in the financials of the business. When it comes to business finance, seeking out financial tips could significantly bolster your strategies and ensure sound fiscal management for your enterprise.

It is the duty of accountants to update oneself on new technologies and systems that can benefit the business. A business environment deals with various functions and an accountant bridges the gap between them to help the business in general.